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Problem-
Sperberg Corporation's operating leverage is 6.1. If the company's sales increase by 12%, its net operating income should increase by about:
a. 2.0%
b. 59.6%
c. 12.0%
d. 73.2%
Additional requirement-
The problem belongs to Basic Accounting and it discusses on compute of change in net operating income.
as of december 31 2010 the end of the prior quarter the companys general ledger showed the following account
queensland - sales 4000000 average operating assets 2000000 net operating income 360000 property plant and equip
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